LEGAL COUNSELNEAR ME
Real Estate Closings

What happens when a buyer or seller refuses to close?

A signed agreement of purchase and sale is binding. If a buyer walks away without a valid condition to rely on, they risk losing the deposit and being sued for the difference if the property later sells for less. If a seller refuses to close, a buyer can seek specific performance — an order compelling the sale — because land is treated as unique.

What to do next

  1. Check whether a condition actually applies

    Financing, inspection and status-certificate conditions are exits only if unfulfilled and properly invoked within the stated period. Once waived, they are gone. Read the waiver dates before anything else.

  2. Have your lawyer put the other side on notice

    A formal demand that they close, tendering your own performance, preserves your position. Failing to tender can weaken a later claim.

  3. Understand the remedies

    Sellers can generally keep the deposit and claim the shortfall plus carrying costs if the property resells for less. Buyers can seek specific performance or damages. Both are real, and both are expensive to litigate.

  4. Consider the commercial settlement

    Most failed closings settle on the deposit plus some contribution. Litigating to judgment often costs more than the gap being fought over — get the numbers modelled before committing.

Frequently asked questions

Can a buyer just forfeit the deposit and walk?

Not necessarily. The deposit is not automatically the limit of liability — a seller can also claim the shortfall on resale and carrying costs.

Can I force a seller to sell?

Specific performance is available for land because each property is treated as unique, though courts consider whether damages would be adequate. It is a genuine remedy, not a threat.

What if my financing fell through after I waived the condition?

That is the hardest position to be in — the waiver removed your exit. Get advice immediately; mitigation and prompt negotiation matter more than argument.

Who holds the deposit?

Usually the listing brokerage in trust. It cannot be released without both parties' direction or a court order, which is often what forces a settlement.

This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.

Dealing with this situation?

Tell us what happened and we will help you identify the type of lawyer who handles it.

By submitting, you agree to be contacted about your inquiry. This is not legal advice and does not create a lawyer–client relationship.

Top rated

Real Estate Closings Firms Ready to Help

Independently verified — featured placements appear first.

Go deeper

Guides, Forums & Where This Is Decided

Background reading and the bodies that hear real estate closings matters.

Related guides

  • The Legal Side of Buying a Home

    The legal steps in a home purchase: conditions that protect you, title and searches, the closing process, and how Quebec's notarial system differs.